Correlation Between Jahen Household and Offshore Oil
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By analyzing existing cross correlation between Jahen Household Products and Offshore Oil Engineering, you can compare the effects of market volatilities on Jahen Household and Offshore Oil and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Jahen Household with a short position of Offshore Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahen Household and Offshore Oil.
Diversification Opportunities for Jahen Household and Offshore Oil
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jahen and Offshore is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Jahen Household Products and Offshore Oil Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Offshore Oil Engineering and Jahen Household is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Jahen Household Products are associated (or correlated) with Offshore Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Offshore Oil Engineering has no effect on the direction of Jahen Household i.e., Jahen Household and Offshore Oil go up and down completely randomly.
Pair Corralation between Jahen Household and Offshore Oil
Assuming the 90 days trading horizon Jahen Household Products is expected to generate 3.76 times more return on investment than Offshore Oil. However, Jahen Household is 3.76 times more volatile than Offshore Oil Engineering. It trades about 0.22 of its potential returns per unit of risk. Offshore Oil Engineering is currently generating about 0.02 per unit of risk. If you would invest 1,631 in Jahen Household Products on September 13, 2024 and sell it today you would earn a total of 386.00 from holding Jahen Household Products or generate 23.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jahen Household Products vs. Offshore Oil Engineering
Performance |
| Timeline |
| Jahen Household Products |
| Offshore Oil Engineering |
Jahen Household and Offshore Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jahen Household and Offshore Oil
The main advantage of trading using opposite Jahen Household and Offshore Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahen Household position performs unexpectedly, Offshore Oil can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Offshore Oil will offset losses from the drop in Offshore Oil's long position.| Jahen Household vs. Jiangxi JDL Environmental | Jahen Household vs. Qiaoyin Environmental Tech | Jahen Household vs. Elite Color Environmental | Jahen Household vs. Guangdong Liantai Environmental |
| Offshore Oil vs. Zhejiang Kingland Pipeline | Offshore Oil vs. NAURA Technology Group | Offshore Oil vs. HOB Biotech Group | Offshore Oil vs. Ming Yang Smart |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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